Daily MAAD was totally positive Wednesday with all 20 issues on plus side. Indicator made new high and reached best level since March 2009. Daily MAAD “strength” over past several weeks has been anemic, however, even though it remains above uptrend line stretching back to November 2012. Daily MAAD Ratio was last marginally “Overbought” at 1.30%.

Daily CPFL was positive Wednesday by 1.85 to 1 and rallied to best level since October 9 short-term low. Indicator remains well below June 11 short to intermediate-term high, uptrend line stretching back to October 2011, and major resistance peak made February 2011. CPFL Daily Ratio was last marginally “Overbought” at 1.17%.

Market Overview – What We Think:

Spark to new highs Wednesday by four of five major indexes we follow merely re-asserted rally begun after October 9 short-term lows. Consolidation over past few weeks proved to be just hesitation in that short-term advance.

“Neutral” readings in Daily MAAD, CPFL, and short-term Momentum prior to Wednesday’s strength, buying was not a total surprise.

In face of still “Overbought” price-based Trading Oscillators, however, there is vulnerability. That tone is somewhat countered by fact Daily MAAD, CPFL, and Momentum were positioned near “Neutral” prior to Wednesday’s gains. Put another way, since Daily MAAD, CPFL, and Momentum were not “Oversold” prior to rally, they could move to “Overbought” levels more quickly.

This move to new highs by 80% of indexes we follow is bullish to extent prices rallied, but we do know this short-term advance already has some signs of vulnerability. But for moment, burden of proof is on bears.

Index

Price Channel Stops (10-Bar MAs of Highs/Lows )

Weekly

Monthly

11/11

11/12

11/13

11/14

11/15

11/15

11/30

S&P 500 Index

SELL1755.93

SELL1756.38

SELL1758.23

SELL1756.34

SELL1754.70

SELL1661.15

SELL1500.00

Dow Jones Industrials

SELL15539.54

SELL15542.77

SELL15563.05

SELL15570.84

SELL15574.23

SELL 14975.85

SELL13944.86

NASDAQ Composite

BUY3946.23

BUY3946.72

BUY3948.81

BUY3946.88

BUY3941.37

SELL3672.28

SELL3145.05

Value Line Index

BUY4183.50

BUY4183.67

BU4184.86

BUY4183.76

BUY4178.92

SELL3911.47

SELL3358.97

Russell 2000

BUY1113.80

BUY1112.00

BUY1111.16

BUY1109.27

BUY1107.20

SELL1040.69

SELL887.74

Note: Stop levels, a function of the extant trend, are based on the trailing moving average price channels for the Highs or the Lows of an index. Whether or not a specific index is suggesting a “Buy” or Sell” is determined by whether or not index prices are above or below the current channel Stop levels. Stop levels should only be used as an entry or exit guide and in conjunction with other market entry and exit strategies.